Nirmala Sitharaman's Budget Speech: Key Proposals from Her 9th Union Budget

On February 1, 2026, Finance Minister Nirmala Sitharaman presented her ninth Union Budget for 2026–27 amidst global economic uncertainty. The budget outlines the government's financial plans and priorities.

Union Finance Minister Nirmala Sitharaman on Sunday (February 1, 2026) presented her ninth consecutive Union Budget in Parliament, creating history once again. The Union Budget for 2026–27 lays out how the government plans to earn and spend money in the coming financial year, while also signalling its priorities for an economy navigating global uncertainty.

With this, Sitharaman not only extended her record-breaking run but also placed herself firmly among India's longest-serving finance ministers when it comes to Budget presentations.

A Budget watched closely amid global uncertainty

This year's Budget arrives at a time when the global economy is far from stable. Ongoing geopolitical tensions, trade disruptions and lingering inflationary pressures have made governments across the world cautious.

In India, the focus has been on whether the Budget would offer relief or fresh support to sectors facing external shocks—especially export-oriented industries that were hit by US tariff hikes last year. From businesses to households, expectations were high as Sitharaman rose to present the government's financial roadmap.

Economic Survey set the tone

Just days before the Budget, on January 29, Sitharaman tabled the Economic Survey 2025–26 in Parliament. The Survey struck a reassuring note, stating that India's economy remains resilient despite a fragile global backdrop.

According to the Survey, strong domestic demand continues to be the backbone of India's growth story, helping the economy withstand external pressures better than many global peers.

Growth outlook remains optimistic

The Economic Survey projected India's potential growth at around 7 per cent, reflecting confidence in the country's medium-term prospects. It also estimated that GDP growth in FY27 could remain between 6.8 per cent and 7.2 per cent.

This optimistic outlook is backed by ongoing structural reforms, stable macroeconomic conditions and continued government focus on infrastructure and development spending.

Here's a closer look at the key quotes and major proposals from Finance Minister Nirmala Sitharaman's Union Budget 2026 speech:

• FM introduced a 6-month foreign asset disclosure scheme; taxpayers can revise ITR-1 & ITR-2 till July 31. TCS on medical and education expenses cut from 5% to 2%.
• Fiscal deficit for FY27 projected at 4.3% of GDP, with debt-to-GDP expected to improve to 55.6%.
• States' share of central taxes retained at 41%, following the 16th Finance Commission recommendation.
• India Semiconductor Mission (ISM) 2.0 launched to boost chip manufacturing; Electronics Component Manufacturing Scheme (ECMS) gets a Rs 40,000 crore boost.
• Plan to create 1 lakh Allied Health Professionals (AHPs) across 10 disciplines like optometry and radiology, plus 1.5 lakh caregivers over five years.
• Government proposed a high-powered Education-to-Employment Committee to strengthen India’s services sector and prepare for Viksit Bharat.
• Rs 20,000 crore allocated for a Carbon Capture & Utilisation Scheme targeting steel, cement, and other industries.
• Seven high-speed rail corridors planned, including Mumbai-Pune, Pune-Hyderabad, Hyderabad-Chennai, and Delhi-Varanasi.
• FM proposes a high-level committee on banking to review and align the sector with India’s next growth phase.
• Public capital expenditure to rise from Rs 11.2 lakh crore in 2025-26 to Rs 12.2 lakh crore in FY27, continuing infrastructure momentum.
• Support for MSMEs includes a Rs 10,000 crore SME growth fund, Rs 2,000 crore top-up to the Self-Reliant India Fund, and additional liquidity support.
• Rare earth mineral corridors to be developed in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.
• Bio Pharma Shakti scheme with Rs 10,000 crore outlay to make India a global hub for biologics and biosimilars.
• FM emphasizes three key priorities: accelerate economic growth, fulfill people’s aspirations, and ensure resources reach every family and community.
• India will continue moving confidently toward Viksit Bharat, balancing ambition with inclusion while remaining closely integrated with global markets.